Bitcoin Price Analysis: Is The BTC Bull Run Over?

Bitcoin (BTC) is up nearly 1% as it edged above $97,000. Price action remains sluggish, with the flagship cryptocurrency registering a sharp decline on Tuesday, falling to an intraday low of $95,301. 

BTC has moved relatively little during the ongoing session and is up by only 0.40% as cautious optimism pushes the price above $97,000 following a market-wide correction thanks to adverse inflation data. 

GameStop Considering Bitcoin (BTC) Investment

GameStop (GME) is considering investments in alternative assets, with BTC and other altcoins also under consideration. The news comes after GameStop CEO Ryan Cohen posted a photo of a meeting between him and Strategy founder and Executive Chairman Michael Saylor. Formerly MicroStrategy, Strategy is the largest corporate holder of BTC. GameStop has a significant amount of buying power to make its investment, with the retailer reporting $4.6 billion in cash on its balance sheet at the end of the third quarter and liabilities less than $1.5 billion. GME shares surged nearly 14% following the news in after-hours trading. 

This is not GameStop’s first foray into the crypto ecosystem. The company had previously launched an online marketplace for non-fungible tokens (NFTs). However, it shut down its offering within two years thanks to the declining popularity of NFTs and a prolonged price crash in the sector. GameStop also offered crypto wallet services that were suspended due to regulatory concerns. 

Trump’s Tariff Pause Fails To Bring Cheer 

US President Donald Trump has paused reciprocal tariffs originally set to come into effect on Thursday. Following the news, BTC and other cryptocurrencies halted their declines, indicating a growing correlation between crypto, traditional markets, and macroeconomic factors. Trump has tasked Secretary of Commerce Howard Lutnick and other economic officials in the administration to create plans for reciprocal tariffs on countries that impose taxes on US goods. Trump said in a press conference with reporters at the Oval Office, 

“On trade, I have decided, for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America, we will charge them.”

Following the press conference, Lutnick stated the tariffs will likely start in April. With the tariffs likely to begin in Q2, investors may be reluctant to deploy capital in the crypto market. This is highlighted by declining Bitcoin ETF inflows. ETFs have registered negative inflows since the beginning of the week, recording a cumulative four-day net outflow of nearly $680 million.

Bitcoin (BTC) Has Plenty Of Upside Left 

Historical trends tied to a key indicator suggest BTC has plenty of upside as renewed inflation concerns in the US threaten to challenge the current uptrend. According to data from TradingView, the 200-week SMA of the BTC price, which smooths out short-term market fluctuations and provides a clearer picture of overall market trends, stands at $44,200 at the time of writing. While this average is at its highest, it is still significantly lower than the previous bull market peak of $69,000. This could be important because data suggests bull markets typically end with the 200-week SMA rising to the record prices established during preceding bull runs. 

For example, the previous bull run ended in late 2021 with the 200-week SMA rising to $19,000, the previous bull market peak. Similarly, the bull market in 2017 ended in December of that year, with the 200-day SMA rising to the record price of $1,200, set over four years ago. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) is trading around the $97,000 mark, nearly 15% away from its all-time high. However, price action has remained sluggish, with the flagship cryptocurrency range-bound as it struggled to build momentum and push towards $100,000. BTC fell to an intraday low of $95,301 before settling at $96,663. Buyers are struggling to influence the price, with on-chain metrics suggesting small traders and retain investors are capitulating out of fear. Investors fear a deeper correction, leading them to reduce their BTC holdings. 

BTC has registered a slight increase in its 24-hour trading volume, suggesting growing market activity. Bitcoin dominance has also registered a marginal increase, indicating that despite its price struggles, BTC remains the asset of choice for traders. 

BTC has been trading in a narrow range since last Monday’s recovery. The price registered a sharp drop on Tuesday, slipping below $100,000 and the 50-day SMA to an intraday low of $96,218 before settling at $97,983. BTC remained bearish on Wednesday, dropping 1.34% to $96,668. Buyers attempted a recovery on Thursday as the price reached an intraday high of $99,237. However, it lost momentum after reaching this level and fell to $96,641. BTC briefly crossed $100,000 on Friday as it surged to $100,222. However, it could not stay at this level and dropped to $96,634, registering a marginal decline. BTC’s price action was muted over the weekend as it registered a marginal increase on Saturday and a marginal drop on Sunday to settle at $96,526.

Source: TradingView

BTC encountered volatility on Monday as buyers and sellers struggled to take control. Buyers ultimately gained the upper hand as BTC registered an increase of almost 1% and settled at $97,468. However, it was back in the red on Tuesday after falling to move past the 50-day SMA and dropped nearly 2% to settle at $95,800. BTC fell to an intraday low of $84,118 on Wednesday as selling pressure intensified. However, it rebounded from this level to register an increase of 2.17% and settle at $97,881. Sellers were back in control on Thursday as BTC dropped to an intraday low of $95,301 before settling at $96,663. The current session sees BTC marginally up as it struggles to build momentum and push toward $100,000. The flagship cryptocurrency has spent most of the day trading above or below the $97,000 mark.

So, where does BTC go from here? As we can see, it is struggling to build momentum, with the price only marginally up during the current session, dropping from above $97,000 just a few minutes earlier. If BTC dips below $96,000, it could fall to $94,000. A break below this level could lead to a deeper correction that could drive the price to $90,000. On the other hand, if bullish sentiment gathers pace, BTC will first look to move past the 50-day SMA and $100,000. A break and close above these levels could open the door for a move to $105,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice